Ethereum Has Healthiest Chart Among Group, Watch Proven Support

Recent weakness in the cryptocurrency space has brought the broader outlook back into question for the major players, however; Ethereum continues to hold up relatively well. So, while others such as Bitcoin, Ripple, and Litecoin continue to sag, Ethereum is bringing in buyers at a key area of support.

See how positioning changes in cryptocurrencies and other markets can help as a tool to determine price direction on the IG Client Sentiment page.

Ethereum 640/30-area bringing in buying interest

Only a modest amount of selling has been seen lately in ETH/USD, which suggests that if buyers come back into the broader sector it will be the first one to garner attention. There is fairly substantial support down in the 640/630-area. This support zone started back at the end of last year, and has recently received a fair amount of attention.

Yesterday, was just another show of buyers with a strong key-reversal bar shaping up by the end of the session. It was also another close above the 200-day MA, which has been a theme for the last three weeks. Intra-day breaks below, but those breaks have been unstained and recoveries by the end-of-day have developed to keep ETH buoyed.

Support could of course break, and if the sector continues to go south this may soon very well be the case. However, a trough can be found, broadly speaking, ETH/USD is set up to rally. Looking higher, the first level of resistance clocks in at the monthly high at 838, followed by 979.

In the event support breaks, a ‘catch-up play’ could be in store as buyers throw in the towel along with the rest of the group. Below ~630, there isn’t any substantial support for a good distance lower.